why has he not referenced it at any point in time. we have had a gun debate that is ongoing, you would have thought it would have been a point of reference. i tell what i do think. i think he should invite me to camp david and we'll go skeet shooting and i'll beat him. >> sean: he is the guy that keeps claiming he

oism that's all the time we have left. greta's staning by to go record roar. greta? >> have they made a connection with this man in this bunker? >> reporter: they have made a connection with the suspect. they are going to be doing so throughout the night. they are beefing up their

resources. we saw four or five u-haul truck arrive. we saw a helicopter arrive, just hours ago, beefing up local and federal efforts to get in touch with this suspect. the sheriff's department telling us not to use live crime scene video, showing tactical plan, such as s.w.a.t. teams arriving at the house. they didn't explain why. but we did learn, there was at least one television inside the bunker. we do know they are in constant communication with the suspect, where he is holding the six-year-old boy captive. police however, do say he is safe. listen. >> i can assure, the negotiators continue to negotiate with the suspect. at this time, we have no reason to believe... that the child has been harmed. >> reporter: now, the situation remaining very tense. in fact, they expanded an area that was evacuated. there are 20 families who are homeless this evening.

one of the family members has been watching the neighbor build this bunker, over a year, putting the final touches on it in just the last week. >> he has a metal bunker that he has had for a while. >> reporter: yeah? >> okay. and he has... pvc piping run within the last month that comes out and sticks into the road. and it's about this high up off the ground. >> reporter: now, greta, there is a press conference scheduled for 11:00 p.m. tonight. if there are any details beforehand, obviously, we will bring them to you immediately. >> before i let you go, tell me, when did this kidnapping take place? >> reporter: the kidnapping initially took place when the kids were arriving home from school yesterday at 3:36 in the afternoon t. happened right in the neighborhood behind me. the gunman barged his way into the school bus and that's when he had told the bus driver that he wanted at least two children to come with him. the bus driver at that time

said, i am not okay with that, that's not going to happen. that's when he fatally shot the bus driver who, later died at the hospital. we know that's when he took that little boy with him, off the bus. as we know now, he is with him inside that bunker. >> they have been in the bunker now about 30 hours then? >> reporter: they have been in the bunker about 30 hours, constantly speaking with authorities. they are not giving us a lot of information. they are tight-lipped, obviously, because of how sensitive it is. they have not confirmed with us the name of the suspect or the name of the boy, whether or not he has any medical conditions. the only thing that we did learn today is the name of the bus driver and the fact that he had a relationship with this suspect. they had allegedly met just the day before. so certainly, a love details that we are looking for answers and hoping to get those tonight, within the next few hours. and if not, by early tomorrow morning. >> thank you, elizabeth. we will be checking back with you. an alabama state representative

has been speaking with the six-year-old captive child's family. representative, i can't imagine how this family is enduring this. can you tell me what they have said to you? >> well, gret athey are hanging on by a thread. i spent time with them last night and all day today. the mother's trying to get some rest tonight in an undisclosed location. but they are just -- praying, the whole county's praying. we had five prayer vigils in dale county. everyone's coming together and praying for a good outcome. we hope for a good outcome here, but we know that we have the murder of the bus driver and his family is devastated and he's a hero for saving the children. he woke up and started the day as a bus driver and ended as a hero. >> has -- has the family been able to speak with the child in the bunker? and do you know what the child has been doing for 30 hours? >> well, i don't know what he's

been doing. but i -- no, they have not spoken to him, other than, he wanted some coloring books and they were able to get him some of his coloring books today. >> have any demands been made? what does the guy in the bunker want? >> i don't know. that -- the police have not released that type of information. >> so there is no indication that he has threatened the boy or anything like that? >> not that i know of. >> and the police, i imagine, they are pretty tight lipped because they are trying to coax this guy out. i take it you don't know this guy, right? >> no, i don't know him. i think, from what i understand, he may be relatively new to this part of the county. but i don't know -- i don't know his history. >> thank you, representative. we are standing by for an update. we will bring that to you shortly. to the latest news about our economy and, brother, it is so grim. u.s. economy unexpectedly

shrinking in the fourth quarter. the biggest dip in 3 years. instead of jumping into high gear to figure out what to do to reverse this economic bad news some, top democrats used their time to play the blame game. they say it's all the republicans' fault. >> the economy shrunk. >> last three months of last year, our economy shrunk. >> the new report suggests that this economy still has not really fully recovered from the financial crisis four years ago. >> it was the democrats are saying? this is the best-looking contraction that there has ever been. >> it's disheartening, although we have moved at least temporarily beyond flirtation with default, to see republican leaders say, visequester in my back pocket. it's not a game. it's the american economy. >> you remember what this administration's growth forecasts were? for the next three to four years? their growth forecasts were anywhere between 3 and 4/2

percent. we are not growing. >> have you heard of a poor man spending himself into prosperity? >> it's just sad to see this happening right in front of our ice. >> there is more work to do. and our economy is facing a major headwind and that's republicans in congress. >> if there were republicans in the white house, we have been in a recession. if there were a republican in the white house, it would be's depression. if there were a republican in the white house, it would be doing impeachment hearings by now. >> house minority leader nancy pelosi blaming the republicans, in a state statement, she says the disappointing gdp report is from the republican strategy of obstruction and manufactured crisis. what do republicans have to say about all the finger-pointing? former congressman allen west joins us. good evening. tell me what you think about the finger pointing. >> good evening. thanks for having me on. the most important thing you can understand is that leaders take responsibility and look for

solutions. it is not a blame game. there is plenty of blame to go around. i think when you look at who the chief executive officer of the united states of america is, that's the person that resides at 1600 pennsylvania. when we heard the news about this stimulus package that was going to be spent back in 2009, some of these projections, as far as unemployment, as far as gdp growth, we have not met those. i think the thing that should happen right now, i know that earlier today, art lav erwas -- laffer was on. at this point in the reagan administration, they had 7.1 gdp growth. so they had the right fiscal and tax and monetary policies to turn things around then. i think those same principles would work today. >> there are two issues on the table here. number 1, what is wrong with the economy and are the policies correcting it or leading us in the right direction isn't other

is the immediate response by washington. some in washington to the very grim news. americans woke up to feel extreme pain, learning that the economy shrunk in the last quarter and the first thing they hear out of washington is with leader peuloseet and white house press secretary, blaming the republicans and even senator marco rubio was quick to release a statement, casting the blame right back on president obama. but there is no effort to -- let's jump into this and solve this problem together. instead, it's immediately start the blame. >> you are absolutely right. one of the things we have to look at, how do we get capital flowing in the united states economy so we have growth and expansion of our small businesses. we look at our corporate business tax rate, which is the highest in the world. we need to turn that around so we create opportunities and get people hired and start producing again. but another thing we have to be concerned about with this anemic, almost retrograde gdp number, you have a federal government, spending 24 to 25%

of our gross domestic product and that's going to increase from 30 to 31%, over the next 8 to 10 years. so once again, we have to look at spending in washington, d.c. but here in january, you see with the payroll tax cut that was taken from 4.2%, went back to 6.2%. you have a lot of people seeing that missing rev new and their paychecks as limp have you 8 new taxes from the affordable care act -- that will be hitting all americans. >> i guess if i were a member of congress or -- i would hope or the president or the white house press secretary or whatever, i would hope that if i woke up and saw a shrinking economy, i would think to myself, you know, what am i doing wrong? i'm a political leader. i am, you know, a member of congress or whatever. what is it i am doing wrong? i would hope my first thought wouldn't be to fire off a statement saying, you know, it's my political opponent.

that's what is wrong with washington. the first reaction by -- by at least as far as i can tell, by jay carney, and also by leader peulosey and i have the statement by senator marco rubio, is to quickly jump out, release the statement, criticizing the other side. there is no self-reflection on howho to improve things. >> it's the circular firing squad. i think that's what you are talking about. in that case, nobody wins, partial the american people don't win, who are looking for leaders to sit down and analyze the situation and come up with solutions. einstein said it clearly, the definition of insanity is to do the same thing and look for different results. what really occurrence me is how the furthermore reserve is going to step in and stimulate the economy to $85 billion, they are printing to try to buy up our own debt and our treasury bonds so they can stimulate the economy that way. that's know the way to do t. we have to get the right fiscal

policy and monetary policy. >> but look at what jay carney said, he blames the republicans for the automatic spending cuts, but he neglects to include that both democrats and republicans agreed to that 2011 debt ceiling with that set in motion, more than $500 billion in defense cuttings and whatever. it's the selective mind of everybody, you know, this is -- this is you know, if the defense -- if the -- if the defense cuts are contributing to this, or anything, have you to look at the fact who, agreed to it. it was both parties. >> you are absolutely right. also, i think that -- mr. carney needs to understand that the whole term of sequester emanated out of the white house. and so, we have to start sitting down and saying, look, the direction we are going is not right. what do we need do as far as the personal income tax rate so we can stimulate growth, especially for the small businesses, sub-chapter "s." we saw an incredible selloff in

december because people were concerned about the increase in the dividend tax rate. we have to start looking at our regulatory policy. already being we have seen 5,700 pages of new regulations from the federal government. that's going to affect the growth of this economy. we have to get the right type of monetary policy also. >> all the things you suggest, if those are the correct solutions or those are really good ideas, it requires leadership, where people are willing to rise above the fight and sit down and talk about it and see what works and what doesn't work. but that's not what we have. instead, we have -- it's like -- it's pointing fingers in this town, which is so counter productive. but i am going to take the last word on that. nice to see you, congressman. >> always a pleasure, greta. thank you. >> it is not just the blame game over the shrinking economy, republicans and democrats dueling over spending. mary landrieu denying that washington has a spending

problem. >> i am not going to keep cutting the discretionary budget, which by the way, is not out of control, despite what you hear on fox news. >> and speaker of the house, john boehner saying that president obama told him we don't have a spending problem. really? former senator jim demint is here. if we have no spending problem, senator, why do we need to extend the debt ceiling? why do we need more money? >> greta, the president is running out of excuses. he can't blame the last administration because he is the last administration. president obama has spent more and created more debt than any president in history. yeast, we have the slowest recovery of any recovery in history. i spent last summer, going around my state, talking to small businesses, dozens of them. so it's very clear to me what's happening now. they were beginning to pull back because of the expected cost of

obamacare, the dod-frank legislation, that was a federal takeover of our financial system is making it harder for businesses to get loans. you look at the expected tax increases, which businesses were trying to plan for, the uncertainty really goes back to the president's policies. it is not obstruction. i wish we had had more of it. the policies in place are hurting our economy. and even more than that, the uncertainty from the mounting debt on individual americans is -- is putting us in a position where it will be harder to dig out of it. >> if we don't agree on the problem, it's hard to solve t. for starters. >> for sure. >> if president obama said that to speaker boehner that we don't have a spending problem, even his own debt commission says, even after the economy recovers, federal spending is projected to increase faster than revenues, so the government will have to continue to borrow money to spend. that sounds like a spending problem.

that may be a revenue problem, but we can i. dprelta, we have doubled spending in the last 10 years and revenue this is year will be at historic highs. you don't have to guess where the problem is. we are spending too much. we need to cut spending in a predictable way so we don't shake up the economy. the fact is, there have been no defense spending cuts yet -- >> not yet. >> and so for them to blame the -- the negative growth on that is certainly -- was a part of it as defense contractors began to pull back. but this started last summer. businesses all over the country beginning to pare back their plans. >> the insanity that nobody knew what their taxes were going to be. >> sure. >> this is the thing that i -- for the life of me, i can't understand how people in good conscience in this city can withstand that. a year and-a-half ago, they

created a deadline about the about raising taxes and they waited a year and-a-half to do anything until they are burning the midnight oil at the end of the year this year -- >> all theater. >> all theater. >> and there is so much uncertainty and the economy is on stall, oz all because the president, the senate and the house don't do their job on time and they drag it out and they get to the end of thede deadline, they create new deadliance. >> they do. they try to use the drama and the theater to force something through at the last minute that couldn't pass otherwise. but we have temporary tax policies, temporary -- well, unknown regulations that are coming out at a faster rate. i was in small business, my own business, for over 15 years. i don't know how anyone can operate in this environment. i have had businesses show me two plans -- if their taxes went up -- which they did, that you were going to cut back on 25 people. this was a 150-person firm.

soots common sense, we don't have to guess at what is happening. it is not republican obstruction. the fact is, it is the policies that the president has put in place, he's making it more and more difficult for businesses to succeed. >> it's disheartening. you know, people -- business people are parking money -- not making investment decisions, not doing anything that might create jobs, but it's because they simply, either they feel overwhelmed or overburdened by policies they don't understand. as a matter of fact, we were we were trying to figure something out about the health care. that's not a good use of one's time, across america, businesses are struggling toking in out. instead of making things. it and -- simple and effective and efficient and fair, we are getting thousands of regulations that are confusing and stagnant and enrage people. >> businesses have to have a fleet of lawyers to figure out obamacare. they are afraid of being peinallized. a lot of them are keeping the

employee count down to not go over the 50 threshold. as a businessman, it's clear what is happening here. it's just bad economic policy. but even worse, the spending, greta, we are not talking about it enough-- the president says it's no problem. but we are spending more than we are bringing in i. frankly, i don't know how you can say spending's not a problem, we don't need to raise the debt ceiling. >> you are right. if we have to borrow money to keep the lights on. the goal is to push the congress to put our country on a path to a balanced budget. the president calls that radical. but over a 10-year period, if we don't stop spending more than we are breaking in, we are going to bankrupt our country. >> nice to see you. >> do you think washington has a spending problem or not? tell us what you think, right now on gretawire.com. straight ahead, robert menendez denying allegations that he engaged with prostitutes after an fbi fleyed florida.

the most unpopular part of obamacare, the individual mandate. we found out who is going to have to pay and how much, all decided by bureaucrats that we didn't elect. that controversy, coming up. plus, which celebrity couple is back together? and the reunion is setting twitter on fire. start guessing, the answer, coming up. [ male announcer ] how do you make america's favorite recipes? just begin with america's favorite soups. bring out chicken broccoli alfredo. or best-ever meatloaf. go to campbellskitchen.com for recipes, plus a valuable coupon. campbell's. it's amazing what soup can do.

plus a valuable coupon. excuse me, sir i'm gonna have to ask you to power down your little word game. i think your friends will understand. oh no, it's actually my geico app...see? ...i just uh paid my bill. did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir. i'll believe that when pigs fly. ok, did she seriously just say that? geico. just click away with our free mobile app. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choo any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ ale announcer ] just like you, business pro. just like you. go naonal. go like a pro.

>>. >> greta: tonight, new jersey senator robert menendez. doctor is a friend of senator and daily caller that the senator traveled on the doctor's

plane to the dominican republic to en gauge with sex with prostitutes. here with the latest. neil, first of all there is late breaking news tonight. about he and his travel. >> that is right. just this evening there is an nbc report that actually reporting that the senator's office acknowledged they had not paid for two of the trips onhe plane of the doctor that is in question here in the f.b.i. a raid that raze the specter and inevitability there is some sort of ethics investigation going on regarding the improper use of funds and improper disclosure of funds. even if there is as the senator is denying the prostitution component of it. >> greta: he has released a statement tonight. he has flat out denied prostitution. but where does this allegation first started on a website, right?

>> right. the allegation surfaced on the daily caller website last november. there has been difficulty substantiating some of those allegat basically there were a couple prostitutes in the dominican republic who claimed that the senator was a client. that has been denied. it's only been in the last week or so that this f.b.i. investigation of the doctor has come to light in florida. that is where this sort of seems to be moving now. >> greta: and website is conservative website. the senator is a democratic senator and democratic senator, some of his supporters, conservatives are trying to get him because she democrat. is it possible that this raid of this doctor's office is unrelated to senator menendez? >> that is plausible because this doctor has a tax lien has

had an irs lean against him in the past according to the miami herald. it's also reported by the maim herald that he was at this facility. health and human services agents involved in the raid which suggest the possibility some kind of medicare fraud investigation which would be more routine. >> greta: one last question. is prostitution illegal in the dominican republic. i don't know, but that may put another twist on it. it may be a tavern dr y story? >> prostitution per se is not illegal in dominican republic but u.s. federal law that prohibits a u.s. national from engaging in prostitution with underaged prostitutes wherever they are in the world. >> greta: is there an allegation this is underage? >> there is some questions about the ages of the people in

question, yes. >> we have to emphasize, to be fair, he denies it and this is a developing story. we'll see the blanks filled in as the days go on. coming up, political trouble brewing in the lone star state. is governor perry getting a challenge by another big name texan. that is coming up. and plus the foreclosure capital of america, and american city tonight on the brink. which one? what is going to happen? find out next. and "a" list couple surprise, which got back together after a bad public break-up. see for yourself coming up. ♪

using robotics and mobile technology, verizon innovators have made it possible for teachers to teach, and for a kid... nathan. tadpole. ... to feel like a kid again. because the world's biggest challenges deserve even bigger solutions. powerful answers. verizon. and you'll dump your old broom.

but don't worry, he'll find someone else. ♪ who's that lady? ♪ who's that lady? ♪ sexy lady ♪ who's that lady? [ female announcer ] swiffer sweeper's electrostatic dry cloths attract and lock dirt, dust, and hair on contact to clean 50% more than a broom. it's a difference you can feel. swiffer gives cleaning a whole new meaning. and now swiffer wet and dry refills are available with the fresh scent of gain. [ male announcer ] to hold a patent that has changed the modern world... would define you as an innovator. to hold more than one patent of this caliber... would define you as a true leader. ♪ to hold over 80,000... well, that would make you... the creators of the 2013 mercedes-benz e-class... quite possibly the most advanced luxury sedan ever. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

[ construction sounds ] ♪ [ watch ticking ] [ engine revs ] come in. ♪ got the coffee. that was fast. we're outta here. ♪ [ engine revs ] ♪ until i got a job in the big apple. becoming a fulltime indoor cat wasn't easy for atti. but he had purina cat chow indoor. he absolutely loved it.

and i knew he was getting everything he needed to stay healthy indoors. and after a couple of weeks, i knew we were finally home! [ female announcer ] purina cat chow indoor. and for a delicious way to help maintain a healthy weight, try new purina cat chow healthy weight. and for a delicious way to help maintain a healthy weight, living with moderate to semeans living with pain.is it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your abilitto fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred.

before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira, to help relieve your pain and stop further joint damage. >> reporter: police have not confirm thatched but we did hear that the six-year-old boy who, has been holed up in a bunker,

really just right behind me in a neighborhood. that's where we know he has been since yesterday afternoon. we did hear from representative steve clouse. he has met with the family. the family hasn't talked to their sorngs but they gave the boy coloring books and medication that the boy needs. he is being fed and he is able to watch television in the bunker. he has been in there since 4:00 yesterday afternoon, when the suspect snatched him off his school bus and killed the bus driver, right before his eyes. we are learning a little bit more about the suspect in this case. we know that neighbors say he's really been a menace in the neighborhood and killed a number of dogs, allegedly. he has been building the bunker at all hours of the night for the past year or two. we would walk around at night with a shotgun and make threatening comments to the neighbors. all of those neighbors, about 20 homes, have been evacuated. they have no idea whether they can return. the suspect was supposed to be

in court today because he was facing menacing charges because of the threatening comments he had made with some of the neighbors. >> elizabeth, there is an 11:00 press here, you are going to be monitoring for us. of course, if there is anything new, we will bring it to the viewers. thatthank you. >> a viewing note, if there are new developments on this story, we will bring it to you immediately. a young child in a bunker, being held kidnapped. now, here it comes, the individual mandate. today the obama administration telling us how the most unpopular part of obamacare will be implemented. irs andhhs issuing thousands and thousands of new regulations, laying out who will have to pay and how much. those are scientist 13,000 regulations in the health care law, written by bureaucrats that and you -- that and you i didn't elect. good evening, sir. >> how are you?

>> the theory is everybody will be forced to buy insurance, obviously, you are sharing the risk pool and people won't go at this time emergency rooms and things along that line. what we saw with the new regulation, the obama administration said, okay, the penalty, if you don't buy insurance is $95. ultimately, tell go up to $700. so it's cheaper to pay the punishment. then you saw in that, a whole host of exemptions for people who don't need to fall under the requirement. if you don't have a federal tax burden, you won't be penalized. i think the individual mandate's wrong. but under the theory, what this is doing is exempt egg lot of people, but it is not changing

the law that a person says, oh, i have a huge problem, i am going to buy insurance. i will utilize it until my problem's over and then i will dump it and that cost is placed on everybody else who is owning insurance for the long term. the penalties are not such that tell force people to buy the insurance. they gallon back to the emergency room. >> the whole idea is that if everybody pitched in, for whatever reason, they didn't have exemptions and people could pitch in to lower the cost for everybody. to the extent that people get exemptions for religious affiliation are some -- there are a bunch of categories of people who are exempted or waivers. or if you would rather take a chance and pay the $95 and not pay the individual mandate, that means the costs are going to rise for everybody else. so it is not as cheap -- for the administration had said it was. is that true? >> yeah, that's that's right. let's say, you decide i am going on pay the $95.

or if you are a small business owner and you decide to put your employees on the public exchange. but if you get, you say, i am going to get insurance, tell pay for this problem i have. then i am going to dump it and go back to the $95. the whole system, the theory behind the system doesn't work. that's why the obama administration prankly promised health insurance costs to go down $2500 a year. we have seen it in fact, go up $3 thousand. we are really at the beginning of the premium increases we are about to see. this law in a lot of theories and i am believing it -- this law was built to fail because the next step then is to say, the evil insurance companies are eration the price, even though it's a flawed system and go to a single-payer system, which is the goal of the left from the beginning. it's a very scary thing. i think there is a trust deficit between the american people and the president, and we see that with the thousands of pains of regulations. >> will thing that struck me,

it's 2800 pages and every member of congress didn't read t. i think that's peculiar. and the 2800 pages was taken to the irs and hhs and people we never elected wrote all the intricate regulations and suddenly, you know, that congress and the president had outsourced to people we don't know. they make the regulations. we are go to see how this plays out. but, you know, the numbers right now don't add up. congressman, thank you, sir. >> thank you. have a nice evening. >> to stockton, california, where the unemployment rate is way over the national average. but the foreclosure rate is in the nation's top 10. and there is more, a rising crime rate to boot. that is definitely not an ad for the local chamber of commerce. but it is reality in the city of stockton, which filed for bankruptcy last year. so what happened to stockton? and could it happen to your home town? griff jenkins hit the ground to find out. >> reporter: the financial crisis that hit five years ago

crushed cities across the country. but none were hit harder than this one, the foreclosure capitol of america, stockton, california. it has the population of roughly 300,000 and is located 80 miles east of san francisco. it was twice named an all-american city. but today, it is the largest city in america to ever file for bankruptcy, fighting against an umunemployment rate that exceeds 14% and a foreclosure rate that is sixth worse in the u.s. and soaring crime that make its the second most dangerous city in california, behind oakland so what happened here? why could what happened here happen in your home town? the mayor of stockton from 2009 until december of 2012. her entire term was spent dealing with this crisis. >> it was an accumulation of bad, bad choices and bad actions, unknowingly councils gave cadillac benefit, cadillac

salaries to employees at the time when there was money. secondly, there was... counc and i will a mayor who wanted to build great infracentral america and sold bonds -- lots of bonds at pretty high interest rates. there was no reserve. they didn't have a saving account to speak of. and of course, to put the cabosh on it was the collapse of the economy. and the housing market here. that is what really was the nail in our coffins. we don't want any other city in california or nationally to have to go through the angst and the heartbreak and all of that that do you when you have to go down this path. the hardest thing in the world for any of us was to lay people off, to reduce health benefits, to take away retiree health benefits completely. >> reporter: cities fall into a trap when they make commitments to public employees

or: when they float bonds. you need to understand the true cost of the debt you are incurring. and you don't, it can grow and grow and grow until it crushes you. >> there are there are a lot of other cities and counties that are wrestling with a lot of the same issues that we have been. >> the recession's laid bare a creeping cancer that was going to get many cities. the only question is whether the cities can take quick, tough action to reduce their obligations and avert bankruptcy or go over the cliff, like stockton did. >> reporter: in stockton, you can see the boarded-up door, the vacancies, leftover flyers, materials. the yard is badly overgrown. but you don't see the sign that says foreclosure. it used to be in the yard on every block here in stockton. but it is not anymore because they say it serves as an advertisement for squatters and criminals. >> we had a terrible problem with people coming into

foreclosed homes and literally stripping them -- taking everything -- i mean, ripping the dry wall off the walls and taking the wiring and the plumbing and toilets. appliances. and tile -- cabinets off the walls. it was horrible. >> stockton is know the only city in the country struggling. how's your town? we want to know. go to gretawire and tell us. coming up, going to hit you right in the wallet. you are about to lose $5 billion. that's next n. 2 minutes, bagel, bulldogs, boxers and goldendoodles, find out which is america's favorite dog? two minutes away. >>.

>> greta: attention dog lovers. the westminster dog show and ahead the american kennel club has news. turns >> america voted the labrador, the favorite breed among dog owners. who is next, german sheppards, in third place, golden retrievers and beagles did rank fourth. rounding out the top 10... we found one dog not happy with the list, our senior producer's dog zoe. my dog, a golden doodle didn't make the list. she is cute. but she is a brat. and this french bulldog isn't sure. what is your favorite kind of dog. we are back in two.

♪ so, i'm working on a cistern intake valve,

and the guy hands me a locknut wrench. no way! i'm like, what is this, a drainpipe slipknot? wherever your business takes you, nobody keeps you on the rd like progressive commercial auto. [ flo speaking japanese ] [ shouting in japanese ] we work wherever you work. now, that's progressive. call or click today.

>>. >> greta: stunning announcement from rick perry. he says he and stated attorney gregg abbot have an agreement about the g.o.p. primary next year. telling a dallas tv station, that the attorney general has promised not to run against him if the governor decides to seek reelection. but wait a minute. that is not the word coming from the attorney general's camp. he wasn't familiar with any such deal and calling on any speculation about his political future unproductive. is this going to get better. economic news couldn't get worse you saw it wrong. listen to this one. according to a watchdog report. 2008 financial bailout is going to cost you even more than first predicted. why and how much more? your tax financial analyst louise joins us. are we a lot losing more money. >> this is bailout from four years ago. most people think it as the bank bailout because a lot of money

was used for banks. really what you see here now, the reason that there are losses predicted have to do with the auto bailout. it has to do with general motors and also with a company called allied financial which was formally called gmac the lending arm of gm. so perhaps lost $27 billion predicted by the inspector general of the bailout are mainly due to the auto investments and keep in mind the investments were made to try to keep the economy calm and keep auto workers employed. >> greta: is it going to get works. the treasury owns a lot of gm. if we sold gm right now we would be taken to the cleaners, wouldn't we? >> you are right. the treasury department an entire neighborhood, if they put all the houses in the neighborhood at once the prices

will go down. so they have to trickle out. the other thing, for the treasury department to break even on this, the inspector general says we need to sell the gm stock something around $70-71 a share. problem is, gm is trading right now closer to $28 a share. so we'll have to see if the price goes up, otherwise there will be losses. >> greta: i understand we thought we were going to lose $22 billion but another $5 billion. we say it's closer to $5 billion. it's a lot more money. these are huge numbers we're getting stuck with? >> we got in number land when you have $700 billion bailout announced. a lot of us loss perspective on the billion dollar numbers. >> greta: one last question. gmc became allied financial but change their name because they are legitimate?

>> they did a whole marketing campaign to try to rebrand themselves. the other thing to watch what is going on, how much the executives at allied and gm are being paid. a they are being paid a lot of money the inspector general says. >> greta: thank you. >> straight ahead, brace yourself for this one. do you really need to go to the gym? or is sex the best way to burn calories? a new medical report. anything can happen in hollywood. which mega celebrity is back after a

>>. >> greta: well, kris brown topping our media. people magazine tweeting reian rihanna talking about her reunion. that they are back together. the couple broke up four years ago after brown was convicted of beating rihanna. now saying brown makes her happy. and singer announced sparked outrage on twitter. here are some of the tweets. it's not a question whether he will hit him again. disappointed they are back together. is there word for the opposite of a female role mod personnel i suggest we started using rihanna. and which people would leave them alone. they were in love regardless of the past. it's their life to take itself chance again

now to alicia keys, excited to jump in my new role director of blackberry. and pay passengers to this one. associated press, think sex burns calories, obesity myth. don't get rid of your gym membership yet. a new report dispelling the myth that sex burns hundreds of calories. turns out men only burn 21 calories during six minutes of sex. there is no study about woman. >> now to sky news tweeting prince charles takes a rare journey. that was prince charles and camilla. celebrating the birthday of london's under ground. and new york magazine tweeting the senate will have two black members simultaneously for the first time ever. senators are santa clara santa clara senior tim scott and massachusetts senator lynn cohen. what are your favorite tweets today?

follow me on app greta wire. coming up. have you gotten your food order messed up before? [ engine revving ] ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the new c class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. for exceptional offers ...tax time can ofbe...well...taxing. so right now we'll give you... ...$10 off any turbo tax deluxe level software or higher! find thousands of big deals now... ...at officemax. and you learned something along the way.

this is the age of knowing what you're made of. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. see if america's most prescribed ed treatment is right for you. for their annual football trip. that's double miles you can actually use. tragically, their ddy got sacked by blackouts. but it's our tradition! that's roughing the card holder. but with the capital one venture card you get double miles you can actually use. [ cheering ]

any flight, anytime. the scoreboard doesn't lie. what's in your wallet? hut! i have me on my fantasy team. what's in your wallet? hut! we've dided to we're all having such a great year in the gulf, put aside our rivalry. 'cause all our states are great. and now is when the gulf gets even bett. the beaches and waters couldn't be more beautil. take a boat ride or just lay in the sun. enjoy the wildlife and natural beauty. and don't forget our amazing seafood. soome to the gulf, you'll have a great time. especially in alabama. you mean mississippi. that's florida. say louisiana or there's no dessert. brought to you by bp and all of us who ca the gulf home. using cloud computing and mobile technology, verizon innovators have developed a projective display for firefighters. allowing them to see through anything.